Introduction

Recently, Piper Sandler analyst Matt Farrell conducted a comprehensive survey involving approximately 13,500 teenagers to gauge their sentiments regarding Apple Inc.’s iPhone and their expectations for upgrading to the iPhone 16.

Survey Results

In September, Apple revealed its iPhone 16 model, but early pre-order analytics indicate that demand might fall short of predictions. A key reason appears to be that many existing iPhone users do not find compelling reasons to upgrade to the new model.

According to the findings, 22% of teens plan on upgrading to the iPhone 16 this Fall/Winter. This figure marks a slight dip from 23% in Fall 2023 and 24% in Fall 2022, but shows improvement compared to 20% during the Spring 2024 survey. Remarkably, despite the slight decrease in upgrade intentions, a staggering 87% of teens still own an iPhone, reflecting stable ownership trends among this demographic. Furthermore, 88% of teens express an expectation that their next phone will also be an iPhone.

Trends in Technology Upgrades

While enthusiasm for Apple products remains, only about 30% of teens intend to upgrade any Apple hardware in the next six months, which Farrell considers surprisingly low given the overall positive attitude toward Apple. This could suggest a shift in priorities or concerns about the value offered by newer models.

Interestingly, the average iPhone owned by teens is around three generations old, indicating that many users may be overdue for an upgrade. The survey also highlights that over 70% of teens now own AirPods, with 25% planning to purchase them in the next six months. Moreover, more than 30% of the surveyed teens have either an Apple Watch or an iPad.

Implications for Apple

The broader implications of this survey point to a potential slowdown in upgrade cycles for the iPhone, which could impact Apple’s revenue streams and overall growth strategy. Piper Sandler has maintained a 'Neutral' rating on Apple with a price target of $225.

Conclusion

In a time when technological advancements are rapid, it remains to be seen how Apple will adapt to maintain its stronghold over the teenage market. Will they come up with features that reignite enthusiasm, or are we witnessing a shift in preferences? Share your thoughts below on what might be the next big thing for Apple to capture the attention of teens!